Allahabad High Court

COMMITTEE OF MANAGEMENT CHAUDHARY CHARAN SINGH GRAMODYOG EVAM PRAVAIDHIK SANSTHAN AND ANOTHERversusSTATE OF U.P. AND 2 OTHERS

Decided: 14 September 2026
Bench: VINOD DIWAKAR

Holding

The High Court set aside the bank's order dated 25 June 2026 and directed that the bank account be restored and made functional.

Summary

The petitioners, a charitable trust, filed a writ petition challenging a communication dated 25 June 2026 issued by the Manager of Punjab and Sindh Bank, which declined their request to restore and de‑freeze a bank account. The petitioners had earlier submitted an application on 16 June 2026 seeking that the account’s status quo be maintained pending litigation, but the bank allegedly misinterpreted this as a request to keep the account frozen. The High Court examined the enquiry report filed by the police, which recorded the statements of both the bank manager and the petitioner, and found that the bank’s refusal was not justified. Relying on the evidence that the petitioners only sought to prevent interference and not to keep the account frozen, the Court held that the bank’s order could not be sustained. Consequently, the Court set aside the bank’s communication and directed the bank to make the account functional immediately. The order also clarified that any aggrieved party may seek further remedy in the appropriate forum.

Issues considered

Whether the bank's order dated 25 June 2026 refusing to restore the petitioner's bank account is legally valid.
Whether the petitioner's application dated 16 June 2026 was correctly interpreted by the bank.
Whether the High Court can set aside the bank's order and direct restoration of the account.

Subjects

bank account
freezing
status quo
writ petition
order set aside
High Court
restoration

Judgment

HIGH COURT OF JUDICATURE AT ALLAHABAD

WRIT - C No. - 28928 of 2026

Committee Of Management Chaudhary Charan
Singh Gramodyog Evam Pravaidhik Sansthan And
Another .....Petitioner(s)
Versus
State Of U.P. And 2 Others
.....Respondent(s)

Counsel for Petitioner(s) : Aishwarya Pratap Shahi, Sumit Suri, Sr.
Advocate
Counsel for Respondent(s) : Ashok Kumar Singh, C.S.C.

Court No. - 38
HON'BLE VINOD DIWAKAR, J.

1. Heard Shri Nipun Singh, learned Senior Counsel, assisted by Shri Sumit
Suri, learned Counsel for the petitioner, Shri Vaibhav Tripathi, learned
Standing Counsel appearing for the State-respondents, and Shri Ashok
Kumar Singh, learned Counsel appearing for respondent no. 3.

2. The present writ petition has been filed, inter alia, seeking quashing of the
communication/order dated 25.06.2026 issued by Manager, Punjab and
Sindh Bank, Patla, Ghaziabad, whereby the request made by the petitioner-
Secretary for restoring and de-freezing the bank account has been declined
by the Bank authorities.

3. In compliance with this Court's order dated 03.09.2026, the S.H.O., P.S.
Niwari, Ghaziabad, has submitted an enquiry report containing the
statements of the Bank Manager, Punjab and Sindh Bank, Patla, Ghaziabad,
and of petitioner no. 2. Petitioner no. 2 has stated that on 16.06.2026, he
submitted an application to the said bank requesting that the functioning of
the bank account not be affected or altered, as litigation in this regard is
pending before this Court. The Bank Manager, on the other hand, has stated
that he received the aforesaid application on 16.06.2026, but does not recall
through whom it was received.

4. Learned counsel for the petitioner submits that the application dated
16.06.2026 has been misinterpreted by the bank, as it was never intended to
seek freezing of the bank account's operation. Rather, apprehending that the
respondents might interfere with the functioning of the account, the
petitioner had submitted the application requesting that its status quo be
maintained.
WRIC No. 28928 of 2026
2

5. Having regard to the contents of the enquiry report submitted pursuant to
the order dated 03.09.2026, and the circumstances on record, this Court is of
the view that the communication/order dated 25.06.2026 issued by the
Manager, Punjab and Sindh Bank, Patla, Ghaziabad, cannot be sustained and
is, accordingly, liable to be set aside.

6. Consequently, the impugned communication/order dated 25.06.2026 is
hereby set aside. The writ petition is, accordingly, allowed. The concerned
Bank authority is directed to take necessary steps forthwith for making the
bank account in question functional and to permit its operation in accordance
with law.

7. It is, however, made clear that the present order shall not preclude the
respondents, if they are aggrieved by the restoration/operation of the account
or by any direction contained herein, from availing such remedy as may be
available to them in law. Any such remedy shall be pursued before the
appropriate forum in accordance with law.

September 15, 2026
Shafique
(Vinod Diwakar,J.)

Digitally signed by :-
SAFIKUR RAHAMAN
High Court of Judicature at Allahabad

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